Kossek-E-Lee-M-2008-Implementing-a-reduced-workload-arrangement-to-retain-high-talent-A-case-study-J

ISSN 1088-7156 print / 1550-3461 onlineDOI: 10.1080/10887150801966995 Implementing a Reduced-Workload Arrangement to Retain High Talent: A Case Study Ellen Ernst Kossek Mary Dean Lee McG

Implementing a Reduced-Workload Arrangement to Retain High Talent: A Case Study

Article  in   The Psychologist-Manager Journal · January 2008

DOI: 10.1080/10887150801966995

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Implementing a Reduced-Workload Arrangement to Retain High Talent:

A Case Study

Ellen Ernst Kossek Mary Dean Lee

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Implementing a Reduced-Workload Arrangement

to Retain High Talent: A Case Study

Ellen Ernst Kossek and Mary Dean Lee

ISSN 1088-7156 print / 1550-3461 online

DOI: 10.1080/10887150801966995

Implementing a Reduced-Workload

Arrangement to Retain High Talent:

A Case Study

Ellen Ernst Kossek

Mary Dean Lee

McGill University

Reduced-load work arrangements involve a reduction in workload or hours with

commensurate pay reduction Employers use these arrangements to retain talent

who value dual engagement in career and personal life We discuss the reasons 10

employers support reduced-load work, and its relevance to the

psychologist-manager We share a case study representing employee and manager views

Successful arrangements include these implementation features: (a) targeted to

high-talent individuals with a track record; (b) redesigned, monitored, and

fine-tuned over time; and (c) follow principles of the three Cs: communication, coordi- 15

nation, and challenge management New managerial mind-sets are needed for

success: designer at a distance with high standards, creator of pockets of change,

big picture thinker on flexibility, and talent manager of “whole people.”

Professionals face unique challenges in managing work and personal life

increase workload and work hours (Gerson & Jacobs, 2004) For most profes-sionals, full-time work does not mean 40 hours a week More typically, a full-time professional is expected to work 50, 60, or even 70 hours per week For individuals who seek to advance in their careers, the hours they work can be

work hours or loads is likely to be negatively construed by customers, bosses, Correspondence should be sent to Ellen Ernst Kossek, School of Labor & Industrial Relations, Michigan State University, 433 South Kedzie, East Lansing, MI 48824-032 E-mail: kossek@msu.edu

or coworkers Many professionals are also in dual-career households, where it is hard to be a parent, be an elder caregiver, or “have a life” when work involves such long hours

ameliorate work–life demands Many professionals do have increased access to

a variety of flexibility policies such as flextime, compressed work weeks, or teleworking They also have some job autonomy built into their job design such

as the ability to flex hours or locations Yet most traditional flexible arrangements

workloads and long hours of work being socially equated with career success

Indeed, the scholarly literature backs up the belief that flextime and flexible hours are not fully effective for reducing professionals’ levels of work–family conflict As Baltes, Briggs, Huff, Wright, and Neuman (1999) surmised, the

literature, such as reduced work–family conflict and increased well-being, usually does not carry over to individuals in professional jobs Many alternative work arrangements such as flextime, telework, and compressed workweeks do not necessarily reduce the hours or amount of work to be done One explanation for

that they just reshuffle the work without reducing work hours or loads They also

do not fully control for the career contexts, norms, and working conditions of employed professionals (Kossek, Lautsch, & Eaton, 2006) Individuals in these positions are embedded in career and job contexts with norms and pressures to

When faced with simply too much work to do in too little time and constant job creep of ever mounting work hours into personal life, reduced-load work arrangements have evolved to enable professionals to integrate their profes-sional and personal lives (Lee, MacDermid & Buck, 2000) Reduced-load work

retain high-talent individuals who value being highly engaged in both work and personal life It is currently estimated that approximately 10% of all professionals are on a reduced-load schedule (Shulkin & Tilly, 2005)

GOAL OF PAPER: LEARNING VIA CASE STUDY

of the growing but relatively new work form of professional reduced-load work through the presentation of a case study Toward this end, our paper is organized

as follows First, we define reduced-load work and how it relates to part-time work Second, we discuss why employers would support reduced-load work and

Third, we give some background on the study and the company context in which our case study occurs In the case study, we present the manager and employee perspectives on the reduced-load arrangement and give a flavor of the actual communication that occurred between employee and manager as they

is important for practitioner learning In our discussion, we share what actually happened in redesigning the job and then identify characteristics of successful arrangements and the mind-sets of managers who manage them

REDUCED-LOAD WORK: A CUSTOMIZED FORM

Reduced-load work is a new weapon for winning the war for talent and retaining professionals with valuable skills (Barnett & Hall, 2001) Starting in the 1990s after the eventual implementation of the U.S Civil Rights Act to open up the managerial and professional ranks, a trend began where many skilled

on the fast track leads to role overload and burnout Most of the popular media would have you believe that opting out was the main strategy that high-talent women chose as a response (cf Hewlett, 2004) However, less publicity was given to the fact that some individuals (both men and women) crafted a different

Kossek, 2006; Lee et al., 1999)

Reduced-load work is defined as working less than full-time, such as 4 days

a week instead of 5, and being paid less accordingly These work arrangements have been referred to as “new-concept part-time work” (cf Hill, Martinson,

is because most part-time workers have historically been individuals working in lower-level jobs reduced from a standard 40-hour work schedule and who are not necessarily career-oriented

Yet most reduced-load work involves talented individuals who want to

of over 40 hours a week, reduced-load work can vary greatly in the actual hours worked depending on what the typical load is for that job For example, if a sales manager typically supervises six sales personnel and works 60 hours over

5 days a week, a reduced load of 80% might include job redesign to supervise

a week Or a research scientist who normally works on four research projects

48 hours per week might at 75% load work on three research projects 40 hours a week In sum, although these arrangements are often customized to specific job

and personal needs, what is common across arrangements is that these positions

Why Employers Should Support Reduced-Load Work

Managers may ask, “Why in the world would it make sense to allow our go-to talent to cut back when there is heightened global competition and constant pressures for financial performance?” Well, for one, it is part of an updated

are either burning out or jumping corporate ships Recent reports indicate that most employed executives are dissatisfied with their jobs and are ready to leave and companies are beginning to be aware of the downsides of overwork and increased job stress (“Dispatches on the War on Stress,” 2007) More rewarding

money—are what is key to job hoppers (Metlife, 2006) A recent survey showed that nearly three fourths of U.S companies predict competition for talent to heighten in the next 5 years Work–life balance has emerged as one of the highest recruitment and retention criterion—second only to the quality of coworker and

and Retention,” 2006)

Second, reduced-load work helps organizations adapt to the realities of a changing workforce and helps foster increased diversity in the management and professional ranks It shows responsiveness to a labor market pull strategy

under 18 are in the workforce and 40% of managers and professionals are women (Bond, Thompson, Galinsky, & Prottas, 2002)

Today it is becoming increasingly clear that many talented professionals (including managers) are seeking jobs that are very different from those

sionals, many of whom now want a job that enables them to allocate their time and energy to foster high dual involvement in both caregiving and careers This approach to professional work enables good performers to zero in on what matters most in their jobs and at the same time get breathing space to “have a

Granted, historically, most professional company men and women in their gray flannel suits were married to their employers and put in long hours at work

to climb the corporate ladder, always putting work first over their personal lives This social culture has begun to dramatically change in many Western countries

seek to live a more balanced life and as many are demanding and getting access

to new ways of working Many employees not only in the United States but also abroad want to craft their jobs in order to gain greater control over their work

and family relationships Employers who do not offer customized work options

Third, reduced-load work can actually help productivity contrary to conven-tional wisdom The current strategy of just adding more and more work to existing workloads and organizational systems may be at its breaking point We need to redesign current works systems This runs counter to prevailing wisdom

hours Yet when we let talent cut back, there are many benefits There are cost savings in pay Individuals are able to have increased focus on crucial projects and tasks when on the job The ability to attract and retain top performers is enhanced Coworker relationships and communication are improved, because

at work and home authentically (Kossek, Lee, & Hall, 2007) Backup training systems and subordinate development are also enhanced

Relevance of Understanding Reduced-Load Work to the

Psychologist-Manager

above, there are many reasons the psychologist-manager also could benefit from increased understanding of these arrangements Psychologist-managers histor-ically play a key role in the design and implementation of alternative work arrangements, which generally could be improved in effectiveness of

adopt flexibility and work–life policies on paper at the organizational level than

to actually make them work effectively at the manager and subordinate level of the work unit Employers may formally or informally adopt flexible policies and practices, and they often get good publicity initially However, over time it is

group peers or adapt managerial supervisory practices that are based on assump-tions of full-time professional and managerial work Reduced-load arrangements are a newer work form that challenges the design of existing human resource systems and professional cultural norms of career success being equated with

For all of these reasons, the psychologist-manager needs greater understanding regarding how to successfully change organizational cultures and climates and socialize and train managers on how to motivate professionals who wish to work in different ways Further, traditional psychological models of careers and

want to work less even if it means a pay cut Understanding reduced-load work also will help the psychologist-manager update career models and compensation and talent management systems to meet the demands of the new workforce

Growing numbers of workers such as NEXTERS, Gen X & Yers, retirees and

in caregiving while pursuing an intensive career may not be motivated fully under assumptions of traditional career models (Kossek & Misra, in press) The psychologist-manager who understands new ways of working will also be able

to have insights into new survey items to include on organizational assessments

be able to better partner with line managers in implementing flexible work arrangement and redesign individual jobs and group work to fit with new ways

of working As internal consultants, they also may be better able to take a multiple stakeholder approach from the employee and manager perspective This

managers and individuals come to a meeting of the minds on how to make the arrangements successful and sustain them over time

EMPLOYER CHALLENGES AND BARRIERS TO

EFFECTIVE IMPLEMENTATION

discussion of issues around reduced-load work arrangements The first involved concerns over equity For example, if the employer lets one employee work a reduced load, will the floodgates open? A second impediment is the possible problem of facing backlash if not all employees are able to work on a

feel that managers value them less if they are served by a reduced-load profes-sional The last concern involved managerial reputation risks This is the worry

of a manager that “If I don’t make my corporate numbers, will I be scapegoated

as a softy because I let my subordinates work in ways that don’t always put the

reduced-load work arrangements effectively By highlighting a successful case

in this paper, we hope to enhance managerial learning and effective implemen-tation of policies that are in many companies still just largely formally “on the

Nearly all firms we studied faced some organizational cultural or climate barriers that impeded implementation of policies that allowed talented individuals

to reduce workloads However, these issues are particularly salient in firms experiencing the extremes of growth Fast-growing firms face particular

cannot be hired and integrated quickly enough Downsizing firms face different but surprisingly similar challenges Here companies are also asking nearly all

workers to work more, not less, with fewer labor dollars to allocate as the firm is

trying desperately to maintain or increase market share In both extremes, letting

to the popular managerial wisdom Yet we found managers explaining to us a

different kind of wisdom in accommodating valued employees

To understand how managers and employees might discuss how to implement

these arrangements, let’s turn to our case study

Understanding employee and manager perspectives on how to implement a

new work form, when it is early in the institutionalization of the human

employee, and manager identities have been altered to provide confidentiality,

successful cases we encountered during our study (Kossek & Lee, 2005) We

share views on what managers face in implementing reduced-load work

arrange-ments and issues that career-oriented employees face in asking to work in a

different way than the norm

and 2005, during the time we were funded by the Alfred P Sloan Foundation

to study “Managing Professionals in New Work Forms.” Our work took place

at 17 major employers in the United States and Canada representing 6 business

sectors (high-technology manufacturing, professional and management services,

firm we interviewed at least one manager who had been nominated as having

significant experience supervising reduced-load professionals and at least one

professional who was currently or had recently worked on a reduced-load basis

by choice In the particular case in this paper, the manager interviewed actually

interviewed

The case described below can be used as a teaching tool to open up

conver-sations in your company about how to implement reduced-load work (either

for yourself, for your subordinates, or for clients you serve) It can also be

science undergraduate and graduate students interested in understanding some

of the challenges in implementing new ways of working to support engagement

of professionals in both work and family and personal life

We found in our study that the human resource department often was not

implemented In part, this is because each arrangement is often unique and customized at the department level between employee and manager

Organizational Profile: Jared’s, Inc

Jared’s, Inc., is a well-known East Coast eatery known for offering fresh, quality

to fast-food eateries such as McDonald’s and Burger King, Jared’s entered the marketplace with the intent of giving customers an option for freshly made quality foods at reasonable prices in a reasonable amount of time The Jared’s brand is known for convenience, quality, and the freshness of its products as

The company has experienced an explosion of growth in recent years as both the domestic and international marketplaces have supported the entry of Jared’s restaurants at an increasing rate In addition to growing within the U.S market, the company is expanding into Canada, Europe, Latin America, and Asia at over

creates an increasing volume of work and the need to increase staffing levels and hours

Manager’s View

Background

up through many positions of increasing responsibility in various organizations before signing on with Jared’s 13 years ago She manages eight direct reports and is responsible for strategy surrounding accounting issues that may arise as a result of the international expansion

“One of my direct reports, J.G., has been working a reduced-load schedule for about 4 years now She’s been with the company for several years and has proven herself to be an outstanding performer She’d been identified as someone who has the skills necessary to fill my role once I move on Four years ago

her to balance work and family responsibilities There is no company policy around an arrangement such as this; however, she proposed the arrangement and

I was supportive J.G is an excellent performer and I would hate to lose her talent, although as a manager I am increasingly realizing how it’s somewhat